Recently we had a client come to us who had attempted to deal with her IRS tax debt on her own. She owes the IRS $12,000 in personal tax liability. Ultimately the IRS had asked her to pay the tax debt in full in December of last year. She agreed. However, when the deadline was up for renewal she could not oblige. January 17th, came and went and she had still not made the full payment of her IRS tax liability. Ultimately, the IRS set a new deadline with her for February 17th, 2014. The deadline was to make a payment of $5,000 and then set up a payment plan for $300 a month thereafter. Making large payments to the IRS can be great, if you can afford to do so. However, the client came to us for tax debt help because she couldn’t make the $5,000 payment by the due date of February 17th! Therefore, she has now hired us to help her with the issue. We took 3 simple steps to resolving the situation:
– The first step was to contact the IRS and file the Power of Attorney Form
– The second step was to inform the IRS the taxpayer couldn’t make the payment of $5,000
– The third step was to set up a $160 payment plan on the liability
The taxpayer is now on a much more affordable payment plan, doesn’t have to pay the $5,000, or pay her liability in full at this time. The primary reason for structuring her plan in the fashion we did is so the taxpayer can begin to get current and compliant with her estimated tax deposits. She informed me she was going to owe for 2013 and fall behind for 2014 if she made the $5,000 payment. We have now structured a plan for her to allow her to make her estimated payments timely and in full going forward. Ideally, when her 2013 tax return is due, she will have made enough estimates to pay the balance due in full as well. At the end of the day, her payment plan will remain in place, and she will now be current with her 2013 and start making payments toward her 2014 tax debt.
Hiring effective tax help, implementation of strategy as it relates to the back tax debt, and consulting and coaching regarding future taxes, are all part of resolving the entirety of the issue. If you are having problems paying your current taxes, and the IRS is pressuring you to pay your back taxes, do not hesitate to contact us directly at 720-398-6088. Or on our website at www.highlandtaxresolution.com.